Security & Compliance · Fraud PreventionstructuralFintechBilling

Prepaid card issuers withhold Reg E provisional credit during fraud review

After reporting unauthorized ATM withdrawals and filing a formal fraud claim, a cardholder followed up multiple times but received only generic status updates, with no provisional credit issued as required under Regulation E while the investigation is pending. This leaves fraud victims financially exposed during the review period despite following the required reporting process.

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